Indian stocks experienced a significant downturn on Thursday, wiping out the gains from the previous session. This decline was in alignment with a broader slump in global equity markets, predominantly driven by mounting concerns regarding US debt levels that adversely affected markets with US asset exposure. The BSE Sensex fell by 0.8%, closing at 80,95, while the NSE Nifty 50 similarly dropped 0.8% to finish at 24,610. Recently proposed legislation in the United States, poised to increase the national deficit, compounded this pressure, coming on the heels of rating agencies highlighting the ongoing unsustainability of US debt. Consequently, this placed considerable stress on risk assets globally.
Technology stocks listed in Mumbai, particularly those heavily reliant on North American clientele, were the hardest hit. Companies such as Wipro, Tech Mahindra, TCS, Infosys, and HCL experienced declines ranging from 2% to 2.4%. Additionally, the automotive sector saw losses, with Mahindra & Mahindra falling 3.5% and Maruti Suzuki down 1.5%. However, on a more positive note, Bajaj Auto ended the session on a higher note, following their strategic acquisition aimed at gaining majority control of Austria's KTM. On the economic front, preliminary PMI figures revealed that the Indian economy maintained robust growth momentum.
